Yesterday morning’s weakness in sterling was quickly bought into, as participants speculated that Theresa May would push the EU hard enough to produce concessions she could present to Parliamentarians, potentially allowing her deal to pass.
Well, she has so far achieved the first part of the above statement. Late yesterday afternoon it was confirmed that PM May would head over to Strasbourg to meet Juncker in a last minute attempt to bolster her withdrawal agreement. From the sounds of it, May has been successful in her efforts. Last night it was confirmed that she had secured ‘legally binding changes’ that both ‘strengthen and improve’ the nation’s withdrawal agreement from the European Union. It’s now down to MPs to decide whether it’s fit for purpose in today’s key vote.
The pound rallied against its peers in anticipation of last night’s development’s and today’s vote. After nearly touching $1.2950 and €1.15 in early European dealing the pound slowly crept higher across the day, with each positive headline cementing the move’s momentum. The New York session closed with sterling hovering around the $1.32 and €1.17 level against the US dollar and euro, respectively.
The big vote is set to take place in Parliament later today, as of yet an exact time is unknown. It’s most likely due early evening (circa 7pm) as this allows MPs to mull over the changes May sought. It could be another interesting and volatile day for the Great British Pound. Buckle up…!
Written by Viv Savani. 8:48am, March 12th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.